NMLS SAFE MLO Practice Test

Answer choices

1. A. A pending misdemeanor traffic citation
2. B. A felony conviction involving fraud, dishonesty, breach of trust, or money laundering
3. C. A civil collection account with no criminal charge
4. D. A prior employment gap disclosed on the application

Wrong-answer review

• A. A pending misdemeanor traffic citation: In this scenario, "A pending misdemeanor traffic citation" is a distractor because it does not satisfy the tested uniform state content requirement. The source-backed answer is "A felony conviction involving fraud, dishonesty, breach of trust, or money laundering", which matches the rule or process the question asks about.
• C. A civil collection account with no criminal charge: In this scenario, "A civil collection account with no criminal charge" is a distractor because it does not satisfy the tested uniform state content requirement. The source-backed answer is "A felony conviction involving fraud, dishonesty, breach of trust, or money laundering", which matches the rule or process the question asks about.
• D. A prior employment gap disclosed on the application: In this scenario, "A prior employment gap disclosed on the application" is a distractor because it does not satisfy the tested uniform state content requirement. The source-backed answer is "A felony conviction involving fraud, dishonesty, breach of trust, or money laundering", which matches the rule or process the question asks about.

Answer choices

1. A. HMDA demographic reporting rules
2. B. FACTA disposal rules
3. C. FinCEN Bank Secrecy Act rules for loan or finance companies
4. D. Regulation Z finance-charge rules

Answer choices

1. A. 8 hours of annual continuing education
2. B. 20 hours of approved pre-licensing education
3. C. A county real estate course only
4. D. No education if the applicant passes the test

Answer choices

1. A. The borrower future property-tax bill
2. B. The lender internal profit target
3. C. The appraiser license number
4. D. The finance charge, using that term

Answer choices

1. A. Uniform license applications and reporting requirements
2. B. A waiver of all state-specific licensing authority
3. C. A private database unavailable to regulators
4. D. A system limited to depository institution employees only

Answer choices

1. A. Federal Reserve System
2. B. Department of Housing and Urban Development
3. C. Consumer Financial Protection Bureau
4. D. Securities and Exchange Commission

Answer choices

1. A. The county parcel number for the collateral
2. B. The creditor internal branch number only
3. C. The settlement agent file number only
4. D. The MLO unique identifier assigned through NMLS

Answer choices

1. A. Credit score range
2. B. Loan-to-value ratio
3. C. National origin
4. D. Verified monthly income

Answer choices

1. A. It assigns a unique identifier that follows the originator through NMLS records.
2. B. It replaces state licensing with a single federal license for all originators.
3. C. It permits originators to renew licenses without background checks.
4. D. It requires each state to issue a different identifier for the same originator.

Answer choices

1. A. Whenever the consumer wants two extra business days to shop
2. B. Whenever the loan officer wants to close faster
3. C. When the consumer has a bona fide personal financial emergency and gives the required written waiver
4. D. Only when the property is a second home